Airbnb raises $1 billion to weather the coronavirus crisis
Airbnb has raised $1 billion in debt and equity from Silver Lake and Sixth Street Partners.
Why it matters: Airbnb, like the rest of the travel industry, has taken a major business hit as a result of the coronavirus pandemic. The company recently halted all marketing spend and froze hiring. Questions also remain about its plans to go public this year.
- Though the company didn't share how the deal values the company, Airbnb recently lowered its 409a valuation (an internal appraisal of its value) to $26 billion, down from $31 billion when it last raised funding, Axios has learned.
- The new deal does not include any ratchets or coercive terms imposing conditions on the company, such as a timeline to go public, a source tells Axios.
- There was no secondary sale as part of the deal either.
Go deeper: The gig economy's coronavirus test